3M MAKES EQUITY INVESTMENT IN HEARx
3M MAKES EQUITY INVESTMENT IN HEARx WEST PALM BEACH, Fla., Nov. 1 /PRNewswire/ -- Paul A. Brown, M.D.,
chairman of HEARx Ltd. (NASDAQ Bulletin Board OTC: EARS) announced today that after a successful six-month test marketing program by HEARx of the new 3M programmable hearing aid, Minnesota Mining & Manufacturing (3M) (NYSE: MMM) has completed an investment in HEARx totaling $2.05 million. For its investment, 3M has acquired senior preferred stock and warrants of HEARx and the right to acquire, for an additional $1.5 million, additional shares of senior preferred stock. The senior preferred stock does not pay any dividends. Subject to HEARx shareholder approval, the initial senior preferred stock and warrants will be convertible into a total of 11 percent of HEARx common stock. The acquisition of the additional senior preferred stock would increase 3M's ownership to 17 percent.
Brown also stated that HEARx has been granted expanded distribution rights to the new 3M programmable technology. National distribution of 3M products by HEARx will be based on patient demography and the growth of the HEARx network. Brown stated that as long as 3M maintains its ownership position, 3M shall have the right to participate in all future equity offerings, thereby maintaining its percentage of ownership. Brown has agreed with 3M not to sell his shares of capital stock for five years, and thereafter has given 3M a right of first refusal or the right to approve any purchasor. This agreement does not apply to the sale or gift of up to 5 percent of those holdings in the open market. This expanded relationship with 3M when combined with the recently announced transaction with Aetna Health Care Plans certainly moves HEARx a long way toward the goal of becoming a major factor in the field of hearing impairment. HEARx Ltd., the nation's largest network of independent auditory- vestibular-rehabilitative centers, has comprehensive state-of-the-art facilities offering a full range of diagnostic and rehabilitative services, and currently operates 28 locations in New York, Florida, Georgia and Oregon. HEARx already has strategic alliances with Humana Health Care Plans and Aetna Health Care Plans of New York. -0- 11/1/91 /CONTACT: Paul A. Brown, M.D., chairman of the board of HEARx, 407-478-8770, or Paul D. Rosso of 3M Hearing Health, 612-736-5860/ (EARS MMM) CO: HEARx Ltd.; Minnesota Mining & Manufacturing (3M) ST: Florida, Minnesota IN: HEA SU: JT-OS -- NY022 -- 0134 11/01/91 10:37 EST
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|Date:||Nov 1, 1991|
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